STATE  OF  INDIANA 


Public  Accounting  Law 


\  i 


Enacted  by  the 


Sixty-Sixth  General  Assembly 


1909 


Public  Accounting  Law. 


Chaptek  55. 

AN  A(7I  concerning  public  ac(*ounting  and  reporting  and  supervision  there¬ 
of,  and  providing  penalties  for  violation  of  this  act. 

[S.  2.  Approved  March  4,  1909.] 

Public  Accounting* — Appointments  by  Governor. 

Section  1.  Be  it  enacted  by  the  general  assembly  of  the 
State  of  Indiana,  That  there  is  hereby  created  and  estab¬ 
lished  a  department  of  inspection  and  supervision  of  public 
offices.  The  principal  officer  of  said  department  shall  be 
known  as  state  examiner,  shall  be  a  skillful  accountant  and 
well  versed  in  public  accounting,  and  shall  receive  an  annual 
salary  of  four  thousand  dollars,  and  he  shall  be  appointed 
by  the  governor.  There  shall  also  be  appointed  by  the  gov¬ 
ernor  two  deputy  examiners  who  shall  have  like  qualifica¬ 
tions  as  the  state  examiner,  and  who  shall  be  of  different 
political  parties,  and  each  deputy  examiner  shall  receive  an 
annual  salary  of  three  thousand  dollars,  and  such  deputy 
examiners  shall  be  subordinate  to  the  state  examiner.  It 
shall  be  the  duty  of  the  governor  within  sixty*  days  after 
the  taking  effect  of  this  act,  to  appoint  such  state  examiner 
and  to  appoint  two  such  deputy  examiners.  One  of  such 
deputy  examiners  shall  be  appointed  for  two  years  and 
the  other  for  four  years,  and  their  successors  shall  be  ap¬ 
pointed  for  four  years.  The  deputy  examiners  shall  be  sub¬ 
ject  to  removal  by  the  governor  upon  executive  order  en¬ 
tered  in  writing  and  showdng  cause  therefor.  The  clerk  of 
said  department  shall  be  appointed  by  the  state  examiner, 
and  shall  be  responsible  to  the  state  examiner,  and  shall 

receive  an  annual  salarv  of  two  thousand  dollars.  Said  sal- 

«/ 

aries  provided  by  this  section  shall  be  paid  monthly  out  of 
any  moneys  of  the  state  not  otherwise  appropriated.  The 
department  of  inspection  and  supervision  of  public  offices 
shall  be  provided  with  suitable  quarters  in  the  state  house. 


Y  35480 


2 


State  Board  of  Accounts — Powers — Duties. 

Sec.  2.  The  governor,  the  auditor  of  state  and  state  ex¬ 
aminer  shall  constitute  the  state  board  of  accounts  and  as 
such  shall  formulate,  prescribe  and  install  a  system  of  ac¬ 
counting  and  reporting  in  conformity  with  the  provisions 
of  this  act,  which  shall  be  uniform  for  every  public  office 
and  every  public  account  of  the  same  class,  and  which  shall 
exhibit  true  accounts  and  detailed  statements  of  funds  col¬ 
lected,  received  and  expended  for  or  on  account  of  the  pub¬ 
lic  for  any  and  every  purpose  whatever,  and  by  all  public 
officers,  employes  or  other  persons,  and  which  shall  show 
the  receipt,  use  and  disposition  of  all  public  property,  and 
the  income,  if  any,  derived  therefrom;  and  shall  show  all 
sources  of  public  income  and  the  amounts  due  and  received 
from  each  source,  and  shall  show  all  receipts,  vouchers  and 
other  documents  kept,  or  that  may  be  required  to  be  kept, 
necessary  to  separate  to  itself  and  prove  the  validity  of 
every  transaction ;  and  they  shall  formulate  all  statements 
and  reports  made  or  required  to  be  made  for  the  internal 
administration  of  the  office  to  which  they  pertain,  and  all 
reports  published  or  that  may  be  required  to  be  made  or 
published  for  filing  in  the  office  of  state  examiner  or  for  the 
information  of  the  people,  regarding  any  and  all  details  of 
the  financial  administration  of  public  affairs;  and  they 
shall  from  time  to  time  make  and  enforce  such  changes  in 
the  system  and  forms  of  accounting  and  reporting  as  shall 
by  them  be  deemed  wise  or  as  may  become  necessary  in  or¬ 
der  to  conform  to  law. 

Separate  Accounts. 

Sec.  3.  Separate  accounts  shall  be  kept  for  every  ap¬ 
propriation  or  fund  made  by  or  accruing  to  any  munici¬ 
pality,  showing  date  and  manner  of  each  payment  made  out 
of  the  funds  provided  for  [by]  such  appropriation,  the  name, 
address  and  vocation  of  each  person,  firm,  organization,  cor¬ 
poration  or  association  to  whom  paid,  and  for  what  paid, 
such  name,  vocation  and  address  to  be  embodied  in  and 
verified  in  all  claims  by  law  required  to  be  filed  for  pay¬ 
ment.  Separate  accounts  shall  be  kept  for  each  depart¬ 
ment,  undertaking,  institution  and  public  service  industry. 
Accounts  of  public  service  industries  shall  show  the  true 


\  *2  ^ 


3 


and  entire  cost  of  the  ownership  and  operation  thereof,  the 
amount  collected  annually  by  general  or  special  taxation  for 
service  rendered  to  the  public  and  the  amount  and  character 
—  of  the  service  rendered  therefor,  and  the  amount  collected 
annually  from  private  users,  if  any,  for  service  rendered  to 
them,  and  the  amount  and  character  of  the  service  rendered 
therefor. 

State  Examiner — Reports  to — Contents. 

Sec.  4.  The  state  examiner  shall  require  from  every  mu¬ 
nicipality  and  every  public  institution,  financial  reports  cov- 
.ering  the  full  period  of  each  fiscal  year,  said  reports  to  be 
made  respectively  by  the  county  auditor,  township  trustee, 
city  clerk,  town  clerk  and  secretary  of  the  board  of  school 
trustees  or  commissioners  for  their  respective  municipali¬ 
ties,  and  by  the  superintendents  of  public  institutions,  in 
accordance  with  the  forms  and  methods  herein  provided 
for,  which  shall  be  uniform  for  all  accounts  of  the  same 
class,  which  said  reports  shall  be  prepared,  verified  and 
filed  with  the  state  examiner  within  thirty  days  after  the 
close  of  each  fiscal  year,  which  shall  be  December  31st  of 
each  year  in  all  cases  in  which  the  fiscal  year  is  not  other¬ 
wise  fixed  by  law.  Such  reports  shall  contain  an  accurate 
statement,  in  summarized  form,  of  all  collections  made  by 
or  receipts  received  by  such  municipalities  and  institutions 
from  all  sources,  all  accounts  due  the  public  treasury  but 
not  collected  and  of  all  expenditures  for  every  purpose  and 
by  what  authority  authorized,  and  also : 

(a)  A  statement  of  all  costs  of  ownership  and  operation 
and  of  all  income  of  every  public  service  industry  owned  by 
any  municipality. 

(i>)  A  statement  of  the  entire  public  debt  of  each  munic¬ 
ipality  and  such  other  and  further  or  more  specific  infor¬ 
mation  in  relation  to  the  cost  of  any  branch  of  the  municipal 
service  or  any  improvement  therein  as  may  be  required  by 
the  state  examiner. 

(c)  A  statement  of  all  revenues  received  from  the  pay¬ 
ments  of  liquor  licenses  and  in  addition  thereto  an  itemized 
statement  of  all  amounts  remaining  unpaid  upon  any  liquor 
licenses  theretofore  granted  or  then  in  force. 

(d)  A  statement  showing  the  amount  of  the  common 
school  funds  in  the  custody  of  each  county,  including  an 


4 


itemized  statement  showing  the  investment  of  all  such 
funds,  of  delinquent  school  fund  mortgages,  and  of  lands 
forfeited  for  non-payment  of  school  fund  mortgages. 

Examiner — Comparative  Statistics. 

Sec.  5.  The  substance  of  the  reports  required  by  the 
provisions  of  this  act  shall  be  arranged  by  the  state  exam¬ 
iner  in  such  form  as  shall  indicate  the  comparative  receipts 
of  the  various  sources  of  revenue  and  the  comparative  costs 
of  the  several  branches  of  government  in  the  specified  mu¬ 
nicipalities  and  shall  be  published  in  an  annual  statement 
of  comparative  statistics,  which  shall  be  issued  for  each 
class  of  municipalities  at  the  expense  of  the  state  as  a  pub¬ 
lic  document,  and  shall  be  submitted  by  the  state  examiner 
annually  to  the  governor  and  to  the  legislature  at  each  reg¬ 
ular  session.  Copies  thereof  shall  also  be  furnished  by  him 
to  each  municipality  named  therein. 

Forms  for  Reports — Blanks,  Etc. 

Sec.  6.  The  governor,  auditor  of  state  and  state  exam¬ 
iner  shall  formulate,  prescribe  and  approve  the  forms  for 
reports  herein  required  to  be  made,  and  the  state  examiner 
shall  annually  furnish  to  the  officers  required  to  make  re¬ 
ports  by  the  provisions  of  this  act,  at  least  ninety  days  be¬ 
fore  the  time  such  reports  are  required  to  be  filed  with  him, 
such  printed  blanks  and  forms  on  which  shall  be  indicated 
the  information  required,  together  with  suitable  printed  in¬ 
structions  for  filling  out  the  same.  In  formulating,  pre¬ 
scribing  and  installing  a  uniform  system  of  accounting  and 
reporting,  the  governor,  auditor  of  state  and  state  examiner 
may  employ  necessary  clerical  assistants  and  one  or  more 
expert  assistants  at  a  reasonable  compensation  to  be  by 
them  determined,  and  such  compensation  shall  be  paid  out 
of  any  moneys  not  otherwise  appropriated,  upon  vouchers 
certified  as  to  correctness  by  the  state  examiner,  and  com¬ 
plying  in  all  respects  with  the  law  relating  to  disbursements 
by  the  state  government. 

Assistants — Field  Examiners. 

Sec.  7.  The  state  examiner  shall  appoint  assistants  not 
exceeding  such  number  as  in  the  judgment  of  the  governor, 
the  auditor  and  the  state  examiner  may  be  required  to  ad- 


minister  the  provisions  of  this  act.  Such  assistants  shall 
be  known  as  ‘  ‘  field  examiners  ’  ’  and  shall  at  all  times  be  sub¬ 
ject  to  the  order  and  direction  of  the  state  examiner,  and 
shall  be  charged  with  the  duty  of  inspecting  and  examining 
accounts  of  such  municipalities.  Such  field  examiners  shall 
be  paid  as  provided  in  section  14  of  this  act,  the  sum  of  ten 
dollars  for  each  day  employed,  and  one  railroad  fare  each 
way  between  their  respective  homes  and  the  place  of  exam¬ 
ination.  No  field  examiner  shall  receive  more  than  one  per 
diem  for  work  performed  in  any  one  day,  and  no  other  al- 
lowa  ^ice  for  expenses  shall  be  made  to  such  field  examiners. 

Competitive  Examinations. 

Sec.  8.  Such  field  examiners  shall  be  appointed  from 
applicants  who  shall  have  successfully  passed  an  open,  com¬ 
petitive  examination  for  testing  their  fitness  for  appoint¬ 
ment.  Such  examinations  shall  be  made  at  stated  periods 
by  the  chief  examiner  and  deputy  examiners  after  due  an¬ 
nouncement  in  the  public  press,  and  shall  be  practical  in 
their  character,  and  as  far  as  may  be  shall  relate  to  those 
matters  which  will  fairly  test  the  relative  capacity  and  fit¬ 
ness  of  the  persons  examined  to  discharge  the  duties  of  the 
office,  and  all  appointments  of  field  examiners  shall  be  made 
solely  upon  the  ground  of  fitness  and  without  regard  to  the 
political  affiliatLon  of  the  appointee,  excepting  that  no  more 
than  one-half  of  the  number  of  field  examiners  employed 
at  any  one  time  shall  belong  to  any  one  political  party.  The 
state  board  of  accounts  is  empowered  to  make  and  estab¬ 
lish,  and  from  time  to  time  alter  and  amend  by-laws,  rules  * 
and  regulations  for  the  proper  enforcement  of  the  provi¬ 
sions  of  this  section. 

State  Examiner — Duties — Powers. 

Sec.  9.  It  shall  be  the  duty  of  the  state  examiner,  and 
he  is  given  full  power  to  examine  personally  or  through  the 
deputy  examiners  and  field  examiners,  all  accounts  and  all 
financial  affairs  of  every  public  office  and  officer  and  of 
every  public  institution,  including  all  state  offices  and  state 
institutions,  and  shall  make  such  examination  at  least  once 
each  year.  On  every  such  examination  inquiry  shall  be 
made  as  to  the  financial  condition  and  resources  of  each  mu¬ 
nicipality  or  institution,  whether  the  laws  of  the  state  and 


6 


the  requirements  of  the  department  of  inspection  and  su¬ 
pervision  of  public  offices  have  been  complied  with,  and  into 
the  methods  and  accuracy  of  the  accounts  and  reports  of  the 
office  examined.  Such  examinations  shall  he  made  without 
notice.  The  state  examiner,  deputy  examiners  or  any  field 
examiner  when  engaged  in  making  any  examination  as  pro¬ 
vided  in  this  act,  or  when  engaged  in  any  official  duty  de¬ 
volved  upon  them  as  such,  shall  have  the  right  to  enter  into 
any  state,  county,  city,  or  township  or  other  public  office 
or  offices  in  this  state,  or  any  public  institution,  and  examine 
any  books,  papers  or  documents  contained  therein  or  be¬ 
longing  thereto  for  the  purpose  of  making  such  examina¬ 
tion,  and  shall  have  access,  in  the  presence  of  the  custodian 
thereof  or  his  deputy,  to  the  cash  drawers  and  cash  in  the 
custody  of  such  officer,  and  they  shall  also  have  the  right, 
during  business  hours  to  examine  the  public  accounts  in 
any  depository  which  has  public  funds  in  its  custody  pur¬ 
suant  to  the  laws  of  this  state.  The  state  examiner,  deputy 
examiner  or  any  field  examiner,  when  engaged  in  making 
any  examination  of  any  office,  officer,  board  or  institution, 
or  any  other  examination  authorized  by  this  act,  may  issue 
subpoenas  for  witnesses  to  appear  before  him  in  person  or 
to  produce  books  and  papers  before  him  for  inspection  and 
examination.  They  shall  have  the  authority  to  administer 
oaths  and  to  examine  such  witnesses  under  oath  orally  or 
by  interrogatories  propounded  touching  the  matters  under 
investigation  and  examination,  and  under  authority  of  the 
state  examiner,  such  oral  examination  may  be  taken  in 
shorthand  and  transcribed,  and  the  reasonable  expense 
thereof  shall  be  paid  by  the  municipality  in  the  same  man¬ 
ner  as  the  compensation  of  the  field  examiner  is  paid.  Such 
subpoenas  shall  be  served  by  any  person  authorized  to  serve 
civil  process  from  any  court  in  this  state.  In  case  any  wit¬ 
ness  duly  subpoenaed  refuses  to  attend,  or  refuses  to  pro¬ 
duce  documents,  books  and  papers  as  required  in  such  sub¬ 
poena,  or  shall  attend  and  refuse  to  make  oath  or  affirma¬ 
tion,  or  being  sworn  or  affirmed,  shall  refuse  to  testify  when 
called  upon  so  to  do,  then  such  person  shall  be  by  such  ex¬ 
aminer  reported  to  the  prosecuting  attorney  of  the  county 
or  judicial  district  where  the  offense  is  committed  for  pro¬ 
ceedings  by  that  officer  under  section  504  of  an  act  entitled 
^^An  act  concerning  public  offenses,’’  approved  March  10, 


7 


1905,  and  such  examiner  may  apply  to  the  circuit  court  hav¬ 
ing  jurisdiction  thereof  for  the  enforcement  of  attendance 
and  answers  to  questions  as  provided  by  law  in  the  matter 
of  taking  depositions.  Wilful  false  swearing  in  such  examin¬ 
ation  shall  he  perjury  and  shall  be  punishable  as  such.  A  re¬ 
port  of  such  examination  shall  be  made;  signed  and  verified 
in  duplicate  by  the  officer  making  the  examination,  one  copy 
to  be  filed  with  the  state  examiner,  one  copy  to  be  filed  with 
the  officer  or  institution  examined,  and  one  copy  to  be  filed 
with  the  auditing  department  of  the  municipality  examined 
and  reported  upon.  If  any  such  examination  discloses  mal¬ 
feasance,  misfeasance  or  non-feasance  in  office  on  the  part 
of  any  officer  or  employe,  an  additional  copy  of  such  report 
shall  be  so  made,  signed  and  verified,  and  it  shall  be  the 
duty  of  the  state  examiner  to  place  such  report  with  the 
governor,  and  the  governor  shall  transmit  the  same  to  the 
attomey  general  and  the  attorney  general  shall  institute 
and  prosecute  such  civil  proceedings  against  such  delin¬ 
quent  officer,  or  upon  his  official  bond  or  both,  as  will  carry 
into  effect  the  findings  resulting  from  such  examination  and 
secure  to  the  proper  municipality  the  recovery  of  any  funds 
misappropriated.  Any  such  report  as  is  described  in  this 
section  or  a  copy  thereof  duly  certified  by  the  state  examin¬ 
er  shall  be  taken  and  received  in  any  and  all  the  courts  of 
this  state,  as  evidence  of  the  facts  in  such  reports  stated  and 
contained.  It  shall  be  unlawful  for  any  deputy  examiner 
or  field  examiner  to  make  any  disclosure  of  the  result  of  any 
examination  of  any  public  account  excepting  as  he  shall 
make  the  same  to  the  state  examiner,  or  as  he  shall  be  di¬ 
rected  to  give  publicity  to  any  such  matter  by  the  state  ex¬ 
aminer,  or  by  any  court. 

Failure  to  Report — Penalty. 

Sec.  10.  Any  public  officer  who  shall  fail  or  neglect  to 
make,  verify  and  file  with  the  state  examiner  any  such  re¬ 
port  as  is  required  by  this  act,  or  who  shall  fail  or  neglect 
to  follow  the  directions  of  the  state  examiner  in  keeping  the 
accounts  of  his  office,  or  who  shall  refuse  the  state  exam¬ 
iner,  deputy  examiner  or  field  examiner  access  to  the  books, 
accounts,  papers,  documents  or  cash  drawer  or  cash  of  his 
office,  or  who  shall  in  any  way  interfere  with  such  exam¬ 
iners  in  the  discharge  of  their  official  duties  shall  be  guilty 


8 


of  a  misdemeanor  and  shall  be  fined  not  less  than  one  hun¬ 
dred  dollars  nor  more  than  one  thousand  dollars,  and  shall 
forfeit  and  be  removed  from  his  office  in  the  manner  now  or 
hereafter  provided  by  law. 

Fee  Records — Fee  and  Salary  Book — Open  to  Public. 

Sec.  11  There  shall  be  kept  in  the  office  of  each  X-)ublic 
officer,  board,  commission  and  institution  in  this  state,  a 
record  of  fees  collected  for  the  public  treasury,  and  in  addi¬ 
tion  a  separate  fee  and  salary  book,  both  of  which  shall  at 
all  times  be  subject  to  public  inspection,  the  forms  for 
which,  for  each  class  of  offices,  shall  be  devised  and  formu¬ 
lated  by  the  governor,  auditor  and  state  examiner  provided 
in  this  act.  It  shall  be  the  duty  of  all  public  officers  in  this 
state,  all  boards,  commissioners,  commissions,  superintend¬ 
ents  of  institutions,  constables,  justices  of  the  peace,  town 
and  city  marshals  and  mayors,  city  judges  and  mayors  who 
act  as  city  judges,  and  all  other  persons  who  collect  fees  for 
their  services  or  as  otherwise  provided  by  law  or  in  the 
course  of  their  official  duty,  to  keep  a  complete  record  of 
all  such  fees  collected  from  any  and  every  source  whatever, 
and  such  officers  and  persons  shall  keep  a  separate  record  of 
all  such  fees  as  are  payable  into  the  public  treasur}^,  and  a 
separate  record  showing  all  fees  and  salaries  received  by 
any  officer  or  person,  and  it  shall  be  the  duty  of  all  such  of¬ 
ficers  who  employ  deputies,  assistants,  clerks,  stenograph¬ 
ers  or  other  employes  who  receive  a  salary,  fees  from  any 
source  whatever,  or  other  compensation,  paid  with  public 
funds,  to  enter  in  such  fee  and  salary  book  the  names  of  all 
such  officers  and  persons,  including  himself,  as  receive  any 
such  compensation,  and  the  amount  thereof,  from  time  to 
time,  as  the  same  accrues,  and  to  show  upon  each  book  the 
particulars  of  each  item  and  from  whom  and  on  what  ac¬ 
count  the  same  accrues  and  when  the  same  was  paid  to  the 
officer  or  other  person,  and  by  whom  paid.  The  intention 
and  purpose  of  this  section  is  declared  to  be  that  such  book 
shall  contain  separately  the  items  and  totals  of  all  sums  col¬ 
lected  for  the  benefit  of  the  public  treasury  and  of  all  sums 
received  by  the  respective  persons  for  all  services  rendered 
and  which  accrues  to  them  respectively  on  account  of  their 
exercising  the  duties  of  such  position  so  held  by  them  re¬ 
spectively,  and  that  this  section  shall  be  construed  to  apply 


9 


to  all  state  officers,  state  institutions,  state  commissioners 
or  commissions,  and  to  all  county,  city,  town,  township  and 
school  officers  in  this  state.  Snch  records  as  are  provided 
for  in  this  section  shall  be  public  records  and  shall  always 
be  accessible  to  the  public. 

Fines  or  Forfeitures — Record  Book — Reports — Penalty. 

Sec.  12.  It  shall  also  be  the  duty  of  any  officer  who  col¬ 
lects  or  receives  fines  or  forfeitures  belonging  to  the  State 
of  Indiana,  to  keep  in  a  separate  book  a  record  of  all  sums 
received  from  such  fines  and  forfeitures,  the  amount  of  each 
and  from  whom  and  when  received.  It  shall  be  the  duty  of 
the  clerk  of  every  court  possessing  criminal  jurisdiction, 
and  of  every  justice  of  the  peace,  mayor  or  city  judge  who 
assesses  fines,  to  make  report  forthwith  to  the  auditor  of 
state  of  any  and  all  fines  assessed  in  such  courts  or  by  such 
justices  of  the  peace,  mayors  or  city  judges  for  violation  of 
the  criminal  statutes  of  the  State  of  Indiana,  arid  upon  pay¬ 
ment  of  any  such  fines  forthwith  to  report  such  payment  to 
the  auditor  of  state,  and  it  shall  be  the  duty  of  such  officers 
immediately  upon  the  occurrence  thereof,  to  report  to  the 
auditor  of  state  the  forfeiture  of  all  bonds  and  recogni¬ 
zances  in  which  the  principals  have  defaulted,  and  for  the 
purpose  of  making  such  report  a  forfeiture  shall  be  deemed 
to  have  occurred  whenever  and  as  soon  as  the  principal  in 
said  bond  or  recognizance  shall  have  defaulted  therein,  and 
upon  payment  of  any  such  forfeiture  the  same  shall  be  by 
such  officer  reported  forthwith  to  the  auditor  of  state,  and 
it  shall  be  the  duty  of  the  auditor  of  state  to  keep  an  ac¬ 
count  of  all  such  fines  and  forfeitures  and  payments  thereof 
and  to  charge  such  officers  therewith  as  debtors  to  the  com¬ 
mon  school  fund  immediately  upon  the  report  of  payment 
thereof.  The  examination  in  this  act 'provided  for  shall  ex¬ 
tend  to  the  offices  of  justice  of  the  peace  and  all  mayors  and 
city  judges  who  collect  and  receive  such  fines  and  forfeit¬ 
ures.  The  expense  of  such  examinations  shall  be  paid  for 
by  the  township  in  and  for  which  such  person  is  justice  of 
the  peace,  or  by  the  city  or  town  for  which  such  person  is 
mayor  or  judge,  as  the  case  may  be,  and  as  provided  in 
section  14  of  this  act.  Any  public  officer  who  shall  violate 
any  of  the  provisions  of  sections  11  and  12  of  this  act  or 
fails  to  comply  therewith  shall  be  guilty  of  a  misdemeanor. 


10 


and  upon  conviction  thereof  shall  be  fined  not  less  than  one 
hundred  dollars  nor  more  than  five  hundred  dollars,  and 
shall  forfeit  and  be  removed  from  his  office  as  now  or  here¬ 
after  provided  by  law. 

Audit  of  Bills — Warrant — Quietus. 

Sec.  13.  It  shall  be  the  duty  of  every  officer  having  au¬ 
thority  to  draw  the  warrant  of  the  state  or  of  any  munic¬ 
ipality  referred  to  in  this  act  in  disbursing  its  funds,  or 
who  has  authority  to  execute  the  receipt  and  quietus  of  the 
state  or  of  such  municipality  in  settlement  with  public  of¬ 
ficers  or  with  debtors,  before  presenting  the  same  for  al¬ 
lowance  to  the  board  or  other  authority  required  to  pass 
upon  the  same,  to  make  an  examination  of  all  claims  as  to 
their  form,  the  authentication  thereof  as  required  by  law, 
whether  they  are  based  upon  contract  or  statutory  author¬ 
ity,  and  as  to  their  apparent  correctness,  and  upon  present¬ 
ing  the  same  to  file  therewith  his  certificate  in  writing  as  to 
such  matters  in  respect  to  each  and  all  of  such  claims ;  and 
where  the  authority  to  pass  upon  and  allow  such  claim  is 
lodged  in  such  officer,  he  shall,  before  drawing  a  warrant 
therefor,  certify  to  the  correctness  thereof  over  his  official 
signature,  and  it  shall  be  his  duty  before  issuing  the  receipt 
or  quietus  of  the  state  or  municipality  to  any  debtor  or  any 
officer  making  settlement  with  the  state  or  municipality  to 
examine  the  report,  account  or  settlement  sheet  upon  which 
settlement  is  made,  and  to  require  of  such  debtor  or  officer, 
or  to  otherwise  secure  all  such  information,  accounts,  vouch¬ 
ers  or  exhibits  as  shall  be  necessary  to  satisfy  such  officer 
issuing  such  receipt  or  quietus  of  the  correctness  of  such  re¬ 
port,  account  or  settlement  sheet,  and  to  certify  thereon 
that  he  has  made  such  examination  and  is  satisfied  as  to  its 
correctness,  and  no  such  warrant  or  quietus  shall  be  issued 
by  any  such  officer  until  such  certificate  shall  have  been  exe¬ 
cuted  and  filed  with  such  claim,  report,  account  or  settle¬ 
ment  sheet. 

Expense  of  Examinations — How  Paid. 

Sec.  14.  The  expense  of  examination  and  investigation 
of  public  accounts,  provided  for  herein,  shall  be  paid  by 
each  municipality  for  the  examination  and  investigation  of 
its  accounts,  including  those  of  its  public  service  industries. 


11 


and  when  any  field  examiner  shall  file  with  the  state  exam¬ 
iner  his  voucher  in  form  prescribed  by  law  relating  to  state 
expenditures,  the  state  examiner,  if  he  approve  the  same, 
is  hereby  authorized  and  empowered  to  certify  the  expense 
of  such  examination  and  investigation  to  the  auditor  of  the 
county  in  which  such  municipality  is  situate,  who  shall 
forthwith  and  without  any  appropriation  being  made  there-  ^ 
for,  issue  his  warrant  for  the  amount  stated  in  such  certifi¬ 
cate  on  the  county  treasurer,  payable  to  the  person  named 
in  such  certificate,  out  of  the  general  fund  of  the  county, 
said  fund,  except  as  to  expense  for  examining  and  investi¬ 
gating  the  financial  affairs  of  the  county  and  its  offices  and 
officers,  to  be  reimbursed  by  the  county  auditor  out  of  the 
moneys  due  such  municipality  at  the  next  semi-annual  set¬ 
tlement  of  the  collection  of  taxes,  in  case  of  school  corpora¬ 
tions  the  same  to  be  deducted  from  the  special  school  fund. 
In  the  event  the  county  to  whom  such  claim  may  be  made 
shall  not  have  possession  or  collection  of  funds  due  or  to  be 
due  to  any  municipality  the  affairs  of  which  are  examined, 
then  such  certificates  shall  be  filed  with,  and  such  warrant 
shall  be  drawn  by  the  disbursing  officer  of  such  municipality 
having  authority  to  draw  warrants  upon  its  funds,  and  said 
warrant  shall  be  paid  forthwith  without  any  appropriation 
being  made  therefor.  In  case  it  shall  be  necessary  to  em¬ 
ploy  such  field  examiners  in  the  investigation  of  state  offices 
or  state  institutions  then  such  certificate  of  expense  shall 
be  made  to  the  auditor  of  the  State  of  Indiana,  who  shall 
draw  the  warrant  of  the  state  to  cover  the  same,  which  war¬ 
rant  shall  be  paid  out  of  funds  not  otherwise  appropriated. 

Traveling  Expenses. 

Sec.  15.  The  necessary  traveling  expenses  of  the  state 
examiner  and  his  deputies  when  engaged  in  the  business  of 
the  state,  shall,  when  approved  by  the  governor  and  duly 
itemized  and  accompanied  with  vouchers,  as  required  by 
the  law  relating  to  state  expenditures,  be  paid  out  of  mon¬ 
eys  not  otherwise  appropriated. 

Bonds  Required. 

Sec.  16.  The  officers  provided  for  by  this  act  shall  each 
give  bond  for  the  faithful  performance  of  his  duties,  as  fol¬ 
lows:  The  state  examiner  in  the  sum  of  five  thousand  dol- 


12 


lars,  to  be  approved  by  the  governor;  each  deputy  exam¬ 
iner  in  the  sum  of  three  thousand  dollars,  to  be  approved 
by  the  governor ;  and  each  held  examiner  in  the  sum  of  one 
thousand  dollars,  to  be  approved  by  the  state  examiner. 

Definitions. 

Sec.  17.  The  term  “municipality,’^  as  used  in  this  act, 
shall  be  construed  to  extend  to,  include  and  mean  any  coun¬ 
ty,  township,  city,  town,  school  town,  school  township,  or 
school  city  in  this  state.  The  term  “public  office,”  as  used 
in  this  act,  shall  be  construed  to  extend  to,  include  and  mean 
the  office  of  any  and  every  person  who  for  or  on  behalf  of 
the  state  or  any  municipality  or  any  public  service  indus¬ 
try,  holds,  receives,  disburses  or  keeps  the  accounts  of  the 
receipts  and  disbursements  of  any  public  funds.  The  term 
“public  officer,”  as  used  in  this  act,  shall  be  construed  to  ex¬ 
tend  to,  include  and  mean  any  person  who  holds,  receives, 
disburses  or  is  required  by  law  to  keep  any  account  of  public 
funds.  The  term  “public  institution,”  as  used  in  this  act, 
shall  be  construed  to  extend  to,  include  and  mean  any  insti¬ 
tution  or  public  service  industry  maintained  in  whole  or  in 
part  at  public  expense  or  supported  in  whole  or  in  part  by 
appropriations  or  public  funds  or  by  taxation.  The  term 
“public  service  industries,”  as  used  in  this  act,  shall  be 
construed  to  extend  to,  include  and  mean  any  and  all  public 
service  industries  owned  either  directly  by  the  municipal¬ 
ity  or  to  the  support  of  which  the  municipality  contributes 
from  public  funds,  or  the  capital  stock  of  which  the  munici¬ 
pality  may  be  the  owner  of  any  part,  or  the  bonds  of  which 
may  be  owned  or  guaranteed  by  the  municipality. 

Bribe — Offer  or  Acceptance — Penalty. 

Sec.  18.  If  any  person  shall  give  or  offer  to  any  state 
examiner,  deputy  examiner,  field  examiner,  clerk  or  other 
employe  of  the  department  of  inspection  and  supervision  of 
public  offices,  any  money,  gift,  emolument,  compensation  or 
thing  of  value  in  order  to  influence  the  action  of  such  exam¬ 
iner  or  other  person  in  any  matter  pending  in  said  depart¬ 
ment  or  in  the  matter  of  the  examination  of  any  public  ac¬ 
count,  or  for  the  purpose  of  preventing  or  delaying  the  ex¬ 
amination  of  any  public  account  or  for  the  purpose  of  in¬ 
fluencing  the  action  of  such  examiner  or  other  person  in 


13 


4 


framing,  changing,  withholding  or  delaying  any  report  of 
any  examination  of  any  public  account,  he  shall,  upon  con¬ 
viction  thereof,  be  fined  in  any  sum  not  more  than  five  thou¬ 
sand  dollars  or  shall  be  imprisoned  in  the  state  prison  for 
not  less  than  one  year  nor  more  than  fourteen  years,  or 
both,  and  any  state  examiner,  deputy  examiner,  field  exam¬ 
iner,  clerk  or  other  employe  of  the  department  of  inspection 
and  supervision  of  public  offices  who  shall  receive  or  solicit 
any  money,  gift,  emolument,  compensation  or  thing  of  value 
for  the  purpose  of  being  influenced  in  any  matter  pending 
in  said  department  or  in  the  matter  of  the  examination  of 
any  public  account,  or  for  the  purpose  .of  being  influenced 
to  prevent  or  delay  the  examination  of  any  public  account 
or  for  the  purpose  of  being  influenced  to  change,  delay  or 
withhold  any  report  of  the  examination  of  any  public  ac¬ 
count,  shall,  upon  conviction  thereof,  be  fined  in  any  sum 
not  more  than  five  thousand  dollars,  or  shall  be  imprisoned 
in  the  state  prison  for  not  less  than  one  year  nor  more  than 
fourteen  years,  or  both.  For  the  purpose  of  this  section  the 
term  ‘‘public  account’’  shall  be  construed  to  extend  to,  in¬ 
clude  and  mean  any  account,  the  examination  of  which  is 
provided  for  in  this  act. 

Examinations  Without  Notice^ — Penalty. 

Sec.  19.  All  examinations  provided  for  in  this  act  or 
made  under  or  pursuant  to  the  provisions  of  this  act  shall 
be  made  without  notice  to  the  officers  whose  accounts  are  to 
be  examined,  and  without  notice  to  any  clerk,  deputy,  em¬ 
ploye  or  other  person  employed  in  or  connected  with  the 
office  or  the  business  of  such  officer,  and  any  person  who 
shall  give  or  cause  to  be  given  directly  or  indirectly  any  no¬ 
tice  or  knowledge  of  any  proposed  examination  of  any  pub¬ 
lic  account  to  the  officer  in  charge  of  such  account  or  to  any 
other  person  other  than  as  such  notice  or  knowledge  shall 
be  communicated  as  between  the  state  examiner,  deputy  ex¬ 
aminers  and  field  examiners,  shall,  upon  conviction  thereof, 
be  fined  in  any  sum  not  exceeding  five  hundred  dollars,  or 
shall  be  imprisoned  in  the  county  jail  for  not  less  than  six 
months,  or  both. 


14 


Books,  Records  and  Forms. 

Sec.  20.  No  system  for  uniform  bookkeeping  or  any 
book,  record  or  form  which  may  hereafter  be  adopted  shall 
be  copyrighted  unless  it  shall  be  deemed  expedient  by  the 
governor  that  a  copyright  be  procured  in  the  name  of  the 
state;  and,  if  any  such  copyright  be  procured,  the  accept¬ 
ance  by  the  state  or  by  any  municipality  of  any  bid  for 
printed  supplies  of  any  sort  shall  operate  as  a  license  from 
the  state  to  the  successful  bidder  to  manufacture  any  such 
copyrighted  books,  records  or  forms  included  in  such  bid 
for  public  use  without  payment  of  royalty.  All  public  books, 
records  and  stationery  used  in  the  offices  for  which  examina¬ 
tion  is  provided  in  this  act,  shall  be  purchased  by  the  state, 
municipality  or  institution  after  the  manner  now  provided 
by  law. 

When  Act  in  Effect. 

Sec.  21.  The  uniform  system  of  accounting  and  report¬ 
ing  and  inspection  provided  therefor  shall  be  installed  as 
far  as  possible  in  all  the  offices  referred  to  in  this  act,  at  the 
beginning  of  the  next  fiscal  year  of  the  municipality  subse¬ 
quent  to  the  taking  effect  of  this  act.  The  examination  pro¬ 
vided  for  in  this  act  under  authority  of  the  state  examiner 
shall  not  extend  back  more  than  one  year  prior  to  the  begin¬ 
ning  of  such  fiscal  year  except  on  authority  of  the  governor. 

Officers — Duties  as  to  Books,  Etc. — Penalty. 

Sec.  22.  It  is  hereby  made  the  duty  of  the  various  of¬ 
ficers  of  the  state  and  its  institutions  and  municipalities  to 
adopt  and  use  the  books,  forms,  records  and  systems  of  ac¬ 
counting  and  reporting  that  shall  be  adopted  by  the  board 
of  accounts,  when  directed  so  to  do  by  said  board,  and  all 
forms,  books,  and  records  necessary  thereto  shall  be  pur¬ 
chased  by  said  officers  and  in  the  manner  now  provided  by 
law.  Any  officer  or  person  who  shall  refuse  to  provide  such 
books,  forms,  or  records,  or  who  shall  fail  or  refuse  to  use 
them,  or  who  shall  fail  or  refuse  to  keep  the  accounts  of  his 
office  as  directed  by  said  board  as  provided  herein,  shall  be 
guilty  of  a  misdemeanor,  and  upon  conviction  shall  be  fined 
not  less  than  one  hundred  ($100)  dollars  and  removed  from 
such  office. 


15 


Repeal. 

Sec.  23.  All  laws  and  parts  of  laws  in  conflict  with  this 
act  are  hereby  repealed  to  the  extent  of  such  conflict;  pro¬ 
vided,  that  the  provisions  of  this  act  shall  not  be  construed 
to  relieve  any  officer  of  any  duties  now  required  by  law  of 
him  with  relation  to  the  auditing  of  public  accounts  or  the 
disbursement  of  public  funds,  but  the  provisions  of  this  act 
shall  be  construed  to  be  supplemental  to  all  existing  pro¬ 
visions  of  law  safe-guarding  the  care  and  disbursement  of 
public  funds :  Andy  provided  further y  That  the  provisions 
of  this  act  shall  not  be  construed  to  limit  or  curtail  the 
power  of  the  governor  of  the  state,  under  existing  laws,  to 
make  examination  or  investigation  of  any  public  office  or  to 
require  reports  therefrom. 


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